Hispanic Families Have a Unique Opportunity to Buy a Home

Fannie Mae recently conducted a national survey that revealed that Hispanics are more interested in homeownership than Americans. In fact, 73% of Latinos believe this. owning a homeIt is a great way for families to accumulate wealth and pass it on to their children. Trends suggest that Hispanics are more likely not to have basic financial literacy, which could impact their ability to buy homes and sustain long-term financial success.

A daunting task can be faced when buying a first home. Latinos have the ability to make the home-buying process a teaching experience with the help of TD Bank’s five step guide for first-time home buyers. Here is some TD’s advice.

1. Saving is important.

* According to a recent national survey by the National Foundation for Credit Counseling, nearly half of Hispanics polled revealed they do not have savings.

* The best way to teach children about saving is by encouraging them to do it. As a weekly allowance recipient, encourage them to set aside 25 percent of the money to be able to save enough for the next video game or toy.

* Then, explain to your children what a down payment is, and how saving for one can help reduce a home’s cost. The lower your interest rate, the higher the down payment.

2. 2. Budgeting and determining your financial capabilities.

* Living within your means is key to long-term financial success. Hispanics are more likely than other people to say they have difficulty paying their bills on time. This could be because many Hispanics make more than they earn. Talking about budgeting early with your children is important.

* By reviewing your income and current monthly debts, you can determine your ideal monthly mortgage payment. You can then narrow down your focus on house hunting to houses you can afford.

3. Understanding credit and loans

* Having bad or little credit makes the goal of owning a home a struggle.

* To drive home the lesson about credit and loans, offer your children a loan to purchase the new shoes or outfit they want. They will have to repay you monthly with a percentage of their weekly allowance.

To view TD Bank’s five-step guide, visit https://esecure.tdbank.com/net/firsttimehomebuyers/default.aspx.